Thousands of Former Sritex Workers Rehired, Labor Ministry Reports, Kompas.com

By Titis Anis Fauziyah and Ferril Dennys for Kompas.com, October 23, 2025

SEMARANG, KOMPAS.com – Head of the Central Java provincial Labor and Transmigration Office (Disnakertrans) Ahmad Aziz announced that some former employees of PT Sri Rejeki Isman (Sritex) who were laid off have now returned to work in the textile industry.

Out of the 11,025 employees laid off, 1,300 are now employed at textile manufacturers PT Citra Busana and 300 have found jobs at PT Jutex. “Several companies are opening up vacancies to accommodate the Sritex workers. Some of the companies don’t have a problem with workers aged over 35 because the experience they bring,” Aziz stated in a phone interview on Thursday, October 23, 2025.

The Central Java provincial government, in collaboration with the Sukoharjo District Labor Office, continues to facilitate job placement for former Sritex workers who are still unemployed. “Since October 2024, when the company went bankrupt, we have been proactive in looking for opportunities for former Sritex employees among companies with positions that need filling,” he said.

In early November 2024, the Central Java provincial Labor and Transmigration Office recorded six companies with vacancies open, totaling nearly 8,000 positions available for former Sritex workers. “Access to employment for these workers remains open,” Aziz said. He confirmed that workers’ entitlements, including old age social security (JHT) and unemployment social security (JKP) payments, have been distributed to former Sritex employees. “The JHT payments were processed within ten days, and the JKP payments have also now been disbursed. Workers are currently receiving a total of Rp 1.4 million ($85) per month for a maximum of six months, along with training and job placement support,” he explained.

Aziz said the JHT payment process was completed within ten days following the mass layoffs, while JKP payments are provided for six months starting from the date of termination.

Severance Pay and Ramadan Allowance Awaits Asset Auction Process

While some entitlements have been distributed, severance pay and the Eid Al-Fitr Allowance (THR) are still pending completion of the Sritex company’s asset auction, which remains unresolved. Aziz reported that his office is coordinating with the bankruptcy administrator, the Sukoharjo district government, and relevant officials to expedite the auction process. “We met yesterday with the administrator, the Sukoharjo district government, and Assistant II and III. We urged the administrator to be more proactive in monitoring the process at the Public Appraisal Services Office (KJPP) and the National Appraisal Services Office (KPKNL) to avoid delays in the auction,” he said.

The process of auctioning the failed textile manufacturer’s assets is expected to take considerable time because of the number of administrative steps involved. “Identifying and recording assets alone can take two to two and a half months. After this, we enter the assessment and validation process at the KPKNL. We hope these steps can be completed as quickly as possible,” Aziz said.

This post is based on https://regional.kompas.com/read/2025/10/23/133037078/ribuan-eks-karyawan-sritex-diterima-kerja-lagi-disnaker-ada-yang-tak. Featured image credit: Workers listen to a speech from company directors at the Sri Rejeki Isman Tbk (Sritex) factory in Sukoharjo district, Central Java, on Friday February 28, 2025. The Central Java provincial Labor and Transmigration Office (Disnakertrans) recorded 10,965 workers at four companies affected by the layoffs at PT Sritex Tbk after it was declared bankrupt by the Commercial Court. (ANTARA FOTO/Mohammad Ayudha).

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In earlier news…

Mass Layoffs at Sritex: Uncertain Severance Pay, Economic Hardship for Workers

By Yoma Times Suryadi for Project Multatuli, March 25, 2025

The hum of textile machinery at PT Sri Rejeki Isman (SRIL), commonly known as Sritex, fell silent on February 28, 2025, as the company officially ceased operations. A day later, on March 1, 2025—just a month before Eid al-Fitr—Sritex laid off 10,969 employees across its group.

Sritex and its three subsidiaries were declared bankrupt by the Semarang Commercial Court on October 21, 2024, under ruling No. 2/Pdt.Sus-Homologasi/2024/PN Niaga Smg. The company appealed to the Supreme Court, but on December 18, 2024, the appeal was rejected, rendering the bankruptcy decision final for the South East Asian textile giant.

Disbelief and Financial Uncertainty

Tumi, 52, a former Sritex employee, was stunned by the abrupt shutdown. She had believed the company could withstand its financial troubles. After 32 years with Sritex, she was proven wrong.

“I never expected it. Suddenly, on February 28, they shut down without any notice. That very morning, my colleagues and I showed up for work as usual, only to realize it was our last day,” she said, tears welling in her eyes.

Tumi, who worked in the spinning department, recalled that orders were still pending, scheduled for completion as late as July 2025. “Those were orders from Bandung,” she said. But after just ten days of work on them a layoff notice arrived via WhatsApp at the end of February.

“Honestly, leaving Sritex has been very hard. The bond with my coworkers was closer than with my own children,” she said.

“The pay wasn’t great, but it was about the feeling and camaraderie. Sometimes at home I find myself crying just thinking about it.”

Now, to keep the household going, Tumi and her husband, Paiman, 51, have started selling young coconut drinks outside their home. Luckily their house sits along a busy road. “It helps us get by,” she said.

At 53 Sri Sulastri shares Tumi’s struggle. Having worked at Sritex since 1991, she relied on her wages to support her family, as her husband, Sriyanto, is a casual laborer. With her younger child still in high school, financial stability remains uncertain.

Despite 33 years in the finishing department, Sulastri’s monthly salary remained at the Sukoharjo Regency minimum wage of approximately 2.3 million rupiah ($150) per month. Having worked there so long with such a low wage, she hopes for some severance pay but has no idea how much she might receive.

“I still can’t believe it. A company that big just shutting down like that?” she said. “The founder, HM Lukminto, built this from selling fabric at Klewer Market in the city of Solo to running a massive factory with thousands of workers.”
Sutardi, 60, a former maintenance worker, started at Sritex in 1989. He left in 2002 to open a dynamo repair shop but took up the offer to go back in 2011 because his workshop was so far from his home.

“I’m still waiting for what the company owes us—severance pay, holiday bonuses, and cooperative savings,” he said.

Fake Sympathy?

Tumi, Sri Sulastri, Sutardi, and thousands of other former employees are now fighting for their unpaid entitlements.

Murjioko, coordinator of “Command Post Orange”—a coalition of the Confederation of Indonesian Trade Unions (KSPI) and Indonesia’s Labor Party—argued that the layoffs were unlawful. He said that the company had gone around legal processes, failing to consult workers or involve unions.

“Termination procedures are clearly regulated under Law No. 2/2004 On Labor Dispute Resolution. There should have been negotiations between the company and the workers, but that never happened,” he said.

Murjioko dismissed gestures from Sritex’s owners—such as hugging workers on their final day—as just gimmicks.

“It was all just for show. If they really cared about their workers, they would have paid the severance pay, holiday bonuses, and cooperative savings instead of leaving everything in limbo,” he said.

Hit Hard

The impact of the factory closing extends beyond employees, affecting the broader local community.

In Pangin neighborhood in Joho Village—just 300 meters from the factory—rooming houses once filled with Sritex workers now sit vacant. For years, these rooms were a steady source of income for locals, accommodating employees from across Indonesia, including East Java.

Warsih, 45, caretaker of a boarding house owned by Pak Togog, said all 15 rooms were constantly full while Sritex was operating.

“I’ve managed this place for 20 years and it has never been empty,” she said.
Beyond lodgings, the small business economy thrived. “I also sold iced tea,” Warsih added. “With so many workers around it was good business.”

Iin Wuryani, 53, a convenience store owner, echoed Warsih’s worries. Many locals operated food stalls, repair shops, and laundromats and all of them depended on Sritex workers for business. “Most of the employees had parents who also worked at Sritex,” she said. The factory’s stability even convinced Iin to leave her own job there after seven years to start her shop.

Now her six lodging rooms stand as empty as the factory itself.

“I just hope Sritex reopens under new ownership,” she said. “The whole community’s economy depends on it.”

This article is based on https://projectmultatuli.org/phk-buruh-sritex-pesangon-tak-jelas-ekonomi-warga-kandas/.

In related news:

• PT Yihong Novatex Layoffs, According to Deputy Industry Minister Faisol Riza, Kompas.com, 7 April 2025
• Transition: Potential Banking Sector Impacts of a Sritex Failure Mulled, Tempo.co, 1 November 2024
• Sritex Workers To Call on Prabowo Government for Clarity Over Jobs, Detik.com, 27 December 2024
• https://www.theguardian.com/world/2025/dec/19/workers-rural-protests-china-land-grabs